Gold and Silver News: Election Uncertainty Meets Diverging Demand
Gold gained support on Wednesday as early Democratic wins in the US midterm elections coincided with a weaker dollar and falling Treasury yields, Reuters reported. Yields are the returns investors receive on bonds; lower yields can make gold, which pays no interest, more attractive. Friday’s US employment report is the next policy test. Traders still anticipate further Federal Reserve tightening, so the recovery faces a rate headwind.
Gold: ETF Buying Holds Up as Bar Demand Slows
The World Gold Council’s November 3 outlook cut its forecast for growth in gold investment demand to around 200 tonnes above 2025, down from 400 tonnes previously. That is an increase in annual demand, rather than the total amount expected to be bought. Buying through exchange-traded funds, investment products traded on exchanges, exceeded expectations, but demand for bars and coins slowed notably in the second half.
ETF inflows held up in the third quarter despite higher bond yields and a stronger dollar. The council sees fiscal concerns and broader uncertainty partly offsetting the cost of holding gold instead of interest-paying assets. It also raised its full-year central-bank demand assessment after stronger-than-expected third-quarter buying and now expects purchases to at least match 2025. Jewellery demand is expected to decline as elevated prices limit affordability. Institutional demand remains supportive, but the buying is uneven.
Silver: Industrial Demand Limits the Recovery Case
WisdomTree’s October 22 outlook, citing Metals Focus, projects a 3% decline in industrial silver demand to about 640mn ounces in 2026. Solar manufacturers are using less silver per cell and replacing it where feasible. Automotive electrification and artificial-intelligence infrastructure still support consumption, but have not removed the pressure from weaker solar demand and efforts to reduce silver use.
WisdomTree’s inventory assessment, using data through September, also shows London holdings recovering as unusually elevated US stocks decline. That points to less strain from metal being concentrated in one region. However, some vaulted silver backs investment products or belongs to holders unwilling to sell, so higher vault totals do not automatically mean more metal is available to buyers. Silver can benefit from stronger investment demand for precious metals, but its industrial exposure remains a constraint.
Gold Price Forecast
Every new Gold analysis as it publishes, today's technical signal and key levels, live price — on one page.
Gold Technical Analysis: Recovery Faces $3,975.314 Resistance
Gold trades near $3,955.060 on TVC’s four-hour chart after recovering from $3,871.239. The bounce is approaching the shaded resistance zone, where sellers may return, while the descending trendline, a line connecting lower highs, and both moving averages remain overhead. A moving average tracks the average price over time.
The first resistance is $3,975.314, followed by $4,068.170. Support, where buyers previously stepped in, is $3,871.239; a break below would expose $3,797.070. RSI, a 0 to 100 gauge of buying and selling strength, has recovered toward 50 without confirming bullish momentum. I keep a slight bearish lean below $3,975.314. Rejection there would favor another support test. A sustained break above that level and the descending trendline would invalidate the immediate bearish view.
Silver Technical Analysis: $48.787 Support Holds Beneath Falling Trendline
Silver trades near $49.802 on the four-hour chart, consolidating above $48.787 after a steep decline. Buyers have defended support repeatedly, but rebounds remain below the descending trendline and both moving averages. The recovery has yet to break that bearish structure.
Resistance is $51.103, followed by $52.849. A four-hour close below $48.787 would confirm a support breakdown and open the way for $47.057. RSI has moved above its yellow average but remains below 50, showing that selling pressure has eased without a clear shift to buyer control. I remain bearish below $51.103 and would watch for rejection near the falling trendline. A sustained recovery above $51.103 and that trendline would invalidate the immediate bearish view.
